Nathan Furr - Nail It then Scale It: The Entrepreneurs Guide to Creating and Managing Breakthrough Innovation

Nail It then Scale It:

The Entrepreneurs Guide to Creating and Managing Breakthrough Innovation

Nathan Furr and Paul Ahlstrom

First Edition, June 2011

Copyright 2011 Nathan Furr and Paul Ahlstrom

All rights reserved.

ISBN: 0983723605

ISBN-13: 9780983723608

Entrepreneurship is changing. A fundamental paradigm shift is sweeping the field from the bottom up as successful entrepreneurs reflect on their experience and begin to recognize the disconnect between what they thought would make them successful and what actually led to their success. Entrepreneurs and investors alike are dissatisfied with the time and money required to launch a successful startup.

In our real-world laboratory over the last 20 years we have researched thousands of companies and directly invested more than $400 million dollars into 100+ startup companies which have gone on to raise an additional $900 million from co-investors and generated billions of dollars in exits and value. In watching the winners and losers we have noticed patterns of success and failure. For example, we have noticed how many entrepreneurs spend immense sums of money without ever discovering a real opportunity, or how the lack of alignment between investors and entrepreneurs leads to distorted outcomes. These and other problems come from a mistaken commitment to the traditional startup process. Through research and trial-and-error we have discovered that there is a better way a consistently effective way that leads to entrepreneurial success. We packed up our learning into this book and call it Nail It then Scale It .

We are not alone in our observations and as this grassroots movement takes hold of the entrepreneurial community, entrepreneurship educators are becoming increasingly dissatisfied with the results of traditional educational programs that focus on writing business plans. The reasons for this disconnect have to do with the underlying evolution of management education and the lack of understanding of the innovation process. The outcome of the paradigm shift will profoundly reshape how entrepreneurs and innovators launch disruptive products and start new businesses, whether as stand-alone businesses or corporate ventures.

The evidence of the change can be seen sprouting in numerous places around the world. Steve Blanks Customer Development philosophy has been followed by others, such as Eric Ries and the Lean Startup; and John Mullins and Randy Komisar in their Getting to Plan B approach. Similarly, the methodologies underlying successful seed funds such as Kickstart or incubators such as Y Combinator or Tech Stars all point to an emerging belief that there is a better process to succeed than what many people are following. Nail It then Scale It represents the best ideas that have come from more than two decades of observing hundreds of world-class entrepreneurs drive positive outcomes. For entrepreneurs and product managers who want additional ideas on the product-development and startup process, we recommend Steve Blanks book Four Steps to the Epiphany.

Together, we have applied our experience and research in this emerging field to create what we see as the entry point for entrepreneurs and innovators who want to launch innovative products and build successful businesses. Whether you are designing a disruptive new product, starting a corporate venture, starting your own business or rescuing your business, applying the principles of the Nail It then Scale It process will dramatically change the way you view a startup and significantly improve your chances of success. We are always looking for customer feedback and case studies. Please send feedback to us at info@nailthenscale.com. Best of luck and stay committed to the process. We have seen it save entrepreneurs years and transform their businesses. It will do the same for you.

Nathan Furr and Paul Ahlstrom

Nathan Furr, Entrepreneurship Professor

Nathan Furr earned his PhD from the Stanford Technology Ventures Program at Stanford University and is currently an entrepreneurship professor at Brigham Young University (recently ranked in the top five entrepreneurship programs nationally). Professionally, Nathan has acted as the founder or advisor to startups in web 2.0, clean technology, professional services, retail and financial services industries. Nathan also sits on the investment board of the Kickstart Seed Fund, an innovative early-stage venture fund and is an expert contributor to Forbes. Nathan also worked as a consultant at Monitor Group, a premiere international strategy consulting firm, working with senior executives on a range of strategic and market discovery initiatives.

Nathans research focuses on market development and early stage entrepreneurship, including leading the Lean Startup Research Project and the e-school approach to rethinking how we teach entrepreneurship. His current research examines how both startups and existing firms successfully adapt to enter a new market. Nathan has co-authored papers on the process by which firms develop innovative business models, the determinants of success for firms changing industries, and the impact of organizational learning on international entry. In addition to his doctoral studies, Nathan has a BA, MA, and an MBA.

Paul Ahlstrom, Managing Director and Founder

Paul Ahlstrom is an entrepreneur and investor who focused most of his career on the early-stage startup process. Paul has founded multiple high-technology startup companies and investment funds in the United States and Mexico.

Pauls current focus is opening up capital sources to Mexican entrepreneurs and supporting the vibrant entrepreneurial ecosystems of Mexico and Latin America. As a leader of Mexicos venture capital industry, Paul and his partner, Rogelio de los Santos, have launched Alta Venture Mexico located in Monterrey, Mexico. (www.altaventures.com)

Prior to founding Alta Ventures Mexico, Paul co-founded vSpring Capital (www.vspring.com) and Kickstart Seed Fund (www.kickstartseedfund.com) in the Rocky Mountain region and Alta Growth Capital (www.agcmexico.com) in Mexico City. As an entrepreneur and through his venture funds, Paul has directly invested more than $400 million dollars in more than one-hundred startup companies. Some of these companies include Ancestry.com (www.ancestry.com, NASDAQ:ACOM); GlobalSim (www.globalsim.com), sold to Kongsberg Maritime (KOG - Oslo Stock Exchange); Senforce, sold to Novell (www.novell.com, NASDAQ: NOVL); and Altiris (NASDAQ:ATRS), which went public and then sold to Symantec (NASDAQ: SYMC); Rhomobile ( www.rhomobile.com ); Aeroprise ( www.aeroprise.com ), sold to BMC (NASDAQ: BMC). Paul has also served on the boards of many successful venture-backed startups including: Public Engines (www.crimereports.com); 7degrees (www.mypeoplemaps.com); The American Academy (www.TheAmericanAcademy.com); and FamilyLink (www.familylink.com ).

In addition to fund creation and investment experience, Paul has direct entrepreneurial and operating experience, having personally founded multiple startups, including Knowlix (1997), a knowledge management IT company which raised venture capital financing and sold to Peregrine Systems in 1999 which in turn sold to Hewlett Packard (www.hp.com) (NYSE: HPQ). Paul was a founding advisory board member of Brigham Young Universitys Rollins eBusiness Center, and he is listed as one of the Founders of Brigham Young Universitys Center for Entrepreneurship and Technology. Paul also serves on the executive committee and board for the University of Utah's Technology Commercialization Office (http://www.tco.utah.edu), which is ranked number one in university-generated spinouts in the United States. Paul previously served as trustee for the Utah Technology Council and other community boards and has also served multiple years as a member of Motorola Corporation's Visionary Research Board (NYSE: MOT). Paul earned his BA in Communications from Brigham Young University. He has also received an honorary doctorate from the Netanya Academic College in Netanya, Israel.